Travelzoo Posts $0.20 Per-Share Loss in Third Quarter
TZOO is trading near its 52-week low of $4.715 (6.3% above the low).
Summary
Travelzoo reported a third-quarter loss of $0.20 per share, a $2.0M net loss, on revenue of $22.9M that rose 3% year over year and slightly missed estimates. That extends the red ink after the $2.1M loss disclosed in the Q2 10-Q filed August 13, which also flagged negative working capital, with management relying on existing cash to fund the next 12 months. The company has been spending on buybacks — $5.2M in Q2 and a $3.3M program initiated in Q1 — which shrinks the share count but drains liquidity while operations lose money. Travelzoo expects fourth-quarter revenue growth from a year earlier. For a micro-cap trading near $5, another quarterly loss keeps the focus on cash burn and whether the repurchase pace can continue.
At the time of this announcement, TZOO was trading at $5.01 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $52.2M. The 52-week trading range was $4.72 to $12.39. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.